Provident Creditors Fight To Be Heard In Ponzi Suit

Law360, New York (July 15, 2009, 12:00 AM EDT) -- Creditors of bankrupt Provident Royalties LLC have filed an emergency motion asking to intervene in the U.S. Securities and Exchange Commission's suit alleging the Texas energy investment company ran a $485 million Ponzi scheme.

In a motion filed Tuesday in the U.S. District Court for the Northern District of Texas, the official committee of unsecured creditors argues that the court's approval earlier in July of the SEC's request to freeze the Provident's assets and appoint a receiver violates the automatic stay provisions of the bankruptcy proceeding...
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